Heavy-hitters Line up for Petronas Asset
Monday 5 June 2017
Industry heavyweights including ExxonMobil of the US and Anglo-Dutch Shell are said to be interested in acquiring a stake worth up to US$1 billion in Petronas’ Block SK 316 off Sarawak, East Malaysia.
Around six companies including Thailand’s PTTEP, Total of France and one or more Japanese players are still in the frame to take up to 49% equity in the offshore asset. Block SK 316 is home to multi-trillion cubic feet gas reserves but with a high carbon dioxide content, prompting Petronas to seek a partner or partners to help exploit the challenging resources.
Second round bids are due in this month and Petronas is expected to select its strategic partner by year-end, according to Reuters.
SK316 contains the large Kasawari field that has estimated recoverable resource of 3 trillion cubic feet of gas.
As well as Kasawari, which contains between 30% and 40% CO2, Block SK 316 is also home to the producing NC3 field that supplies gas to Train 9 at Petronas’ LNG Complex at Bintulu, Sarawak.
Malaysia’s national oil company has repeatedly stated that its move to divest up to 49% in the offshore block is not due to financial constraints but rather to bring on board technical expertise.
"Petronas is interested to explore the latest state-of-the-art technologies for application in the SK316 block with experienced E&P technology partner or partners.
"As part of this effort, we have invited proposals from selected E&P players to find the right partner(s) with the required capability and solutions. We will be critically evaluating the proposals to maximise the value of this important project," the NOC earlier said.